Slide 1 - Utah Symphony and Utah Opera
Presenter notes: Introduce the subject of the presentation and what it aims to achieve at the end. Explain the scenario in which the merger is taking place as well as an overview of the opera and symphony.
Slide 2 – The Competing Values Framework
SPEAKER NOTES:
CLAN – This culture is focused on internal relationships and integration through collaboration. It relies on empowerment, communication and participation to achieve higher levels of commitment from internal resources and high morale among employees. The Utah Symphony shows several traits that belong within the clan culture, mainly because of Keith Lockhart’s style of leadership that emphasizes bonding with internal customers. The Utah opera lays emphasis on external customers such as audiences, patrons and donors in order to maximize profits. Hence, the Opera does not fall under this cultural category.
ADHOCRACY – This culture is focused on flexibility and discretion. It promotes creativity and adaptability in order to attain an innovative work culture that promotes growth and state of the art output. The Opera, being more entrepreneurial in nature, is more open to change and development as is evidence by the free acceptance of the prospect of a merger by its staff and top management. The staff of the symphony is mainly opposed to the idea of the merger, which shows that the organization is closed to the prospects of growth and development. However, from an arts point of view, the Symphony places greater emphasis on creative growth and freedom, following the leadership style of Lockhart, when compared to profit maximization.
HIERACHY – This culture is focused on stability which is achieved through controlled and consistent processes that are measured to ensure efficiency and smooth functioning. The Utah Opera shows signs of controlled processes but they are not measured. Ewers is free, under the hierarchical model, to make independent business decisions which lends a great degree of flexibility when making crucial decisions. The symphony’s management takes decisions without consulting its director or music or the participation of its staff. However, the symphony does have good processes in place, as is evidenced by the year round performances that it delivers.
MARKET – This culture is focused on maximizing profits and market share as well as attaining objectives through external customers, enhanced productivity and competitiveness. As mentioned earlier, the focus of the Symphony is on internal relationship and creative development when compared to profitability. Hence, it does not fall under the market culture. The opera, however, is more oriented towards maximizing profits through external sources but this can be mainly attributed to Ewers’ leadership style and her penchant for driving endowments, rather than the organization’s culture.
SLIDE 3: The Utah Opera Leadership and Culture Style
SPEAKER NOTES: The opera operates in an adhocracy culture mode, with an emphasis on driving change to stimulate growth. It shows several instances wherein the traits of an adhocracy are evident.
Secondly, the focus of the leadership is on financial stability and profitability of the organization when compared to their interests in customer satisfaction and employee welfare, as evidenced by Ewers paying off the massed debts of the organization, soon after assuming leadership. This was accomplished within a very short time and reveals the agility that her leadership imbibes within the organization.
Finally, the opera relied on creative thinking to tackle the challenges presented by a tough economy. For example, in order to secure current as well as future audience interest, it held performances for over 70,000 state students. This shows the innovative streak in the organization’s strategies that is one of the key features of an adhocracy.
Hence, it can be said that the Utah Opera operates under an adhocracy culture as it exhibits all the traits, namely: a) Adaptability, b) Agility, and c) Creativity, that are mentioned in the competing values framework.
Two further points may be noted. The leadership is autocratic in nature and not focused on building interpersonal relationships. In the event of a merger, having a healthy working relationship with members of the organization will prove be an asset. The leadership style of Ewers is what encouraged the symphony to initiate talks about a prospective merger. Hence, it can be said that the autocratic nature of Ewers may actually be a desirable trait to the merged organization
Slide 4 - The Utah Symphony Leadership and Culture Style
The symphony operates under a hierarchal culture, with an emphasis on controlled and measured processes to drive efficiency.
The symphony performs 200 concerts annually. It has remained among the top Group II orchestras in the United States. All of its employees are employed under a one year contract and are covered by a union. These results achieved consistently over the years, are evidence of the controlled and measured processes that the symphony follows. Its performances and employee relations are regulated and follow predetermined schedules and operational standards. The merger itself was proposed by the symphony’s chairman of the board, Scott parker, in order to achieve economies of scale in a tough market. As such, the symphony shows the traits of a hierarchal culture which lays maximum emphasis on control. However, this culture, although may have benefited the symphony in several ways, could prove to be a bane in the case of a merger.
The organizational structure of the organization may be well balanced, with nearly all of its employees being full time, however, the main decision making power rests with the board of directors. The board does not consider the opinion of the musical director and the CEO, who directly report to them, even when the decision to merge was being made. The lack of a solid hierarchical model and effective use of the organizational structure is a sign of leadership weakness. The hierarchal model followed by the symphony clashes with the clan tendencies of its musical director - Lockhart
Slide 5 - The Utah Symphony Leadership and Culture Style - Continued
Although the symphony, as an organization, follows the hierarchal culture model, there seems to be a great influence of the clan culture as well. This is mainly due to the relationship that Director of Music Keith Lockhart shares with the staff and musicians. The clan culture suits the symphony’s organizational structure, where all of its employees are full time and the organization needs to maintain high levels of job satisfaction and worker loyalty to ensure low rates of attrition and high performance levels. As employees are treated as partners instead of subordinates, there are bound to be higher levels of empowerment and collaboration, which is a necessity in a creative field. It places great emphasis on internal relationships and employee welfare. The leadership style of Lockhart is employee –centric, with a focus on empowerment, trust and creative freedom. The importance of arts and creativity takes precedence over profitability and financial viability. However, this does not necessarily apply to the board of directors of the symphony and it is they who have the decision making power. This would explain why a merger proposition was made by the symphony when Lockhart as well as most of the symphony staff had objections to it.
Slide 6 - The Utah Symphony Organizational Structure
(Flowchart of the organizational structure)
Slide 7 - The Utah Symphony Organizational Structure
The organizational structure of the symphony is well balanced.
All employees are full time and are covered under a union.
It follows a centralized format of authority and decision making.
Lower levels of the staff are included in the decision making processes.
Management considers musicians and other artists as being partners and not subordinates.
There is a focus on empowerment across the organizational levels to facilitate the building of trust.
The Chairman of the Board and the Musical Director have a close relationship and direct access to multiple levels of subordinates.
However, there is less emphasis on the top management of the symphony, with the board retaining the right to make key decisions.
Presenter Notes: With reference to the organizational chart shown in slide 4, highlight the above points. Use example from the case study to show how the culture of the symphony affects its hierarchy model. In particular, focus on how the structure promoted and facilitates or hinders the culture model.
Slide 8 - The Utah Opera Organizational Structure
(Flowchart of the organizational structure)
Slide 9 - The Utah Opera Organizational Structure
The organizational structure of the opera is poorly balanced.
All employees are not full time, several of the artists work on a part time or contractual basis.
Employees not covered under a union.
It follows a top heavy format of authority and decision making.
Lower levels of the staff are not included in the decision making processes.
Management does not focus on empowering staff members as a large percentage are not full time employees.
However, Anne Ewers, the General Director, has near autonomous power to make decisions, allowing for greater flexibility.
Ewers communicates directly only with the Director of Operations, who reports to her and the Chairman of the Board and Board of directors, having little interaction with lesser subordinates.
Presenter notes: With reference to the organizational chart shown in slide 4, highlight the above points. Use example from the case study to show how the culture of the symphony affects its hierarchy model. In particular, focus on how the structure promoted and facilitates or hinders the culture model.
Slide 10 - Organizational Structure Post Merger - Limits
The new organization will need to find a mid-way between a top heavy and bottom heavy organizational structure.
While the creative sensibilities will demand the decentralized format of the symphony, Ewers’ controlled leadership will be needed to make tough decisions to make the merger successful.
The combined workforce will need to have common and unbiased terms of employment, that will also be financially viable for the organization.
Presenter notes: With reference to the organizational chart shown in slide 4, highlight the above points. Use example from the case study to show how the culture of the symphony affects its hierarchy model. In particular, focus on how the structure promoted and facilitates or hinders the culture model.
Slide 11 - Key Cultural Measures - HR
The difference in the job status of employees could pose a major threat to the success of the merger.
Ewers will need to take up a thorough evaluation of the utilization of the human capital of both, the opera as well as the symphony in order to find out whether all the members who are full time employees are actually contributing at least 100% productivity.
Great tact will be required in order to carry out the next step, which will be streamlining the workforce to meet the needs and objective of the newly merged organization.
Presenter notes: Explain the two points in detail. Focus on how the job status of the employees of the symphony and the opera differ. Explain how this format of employment has been beneficial or disadvantageous to the organizations. Elaborate on how measuring the productivity of employees will enable the streamlining of the workforce and lead to higher efficiencies.
Slide 12 - Key Cultural Measures - HR
Several internal changes will need to be made in job profiles, changing the status of key personnel from part time to full time, and the elimination of those contracts that are not meeting the set productivity standards.
These measures will ensure the streamlining of the internal HR process to improve worker efficiency, optimize payroll function and increase overall profitability of the organization within the first year post merger.
Presenter notes: Explain the two points in detail. Explain the job insecurities that are bound to affect the work environment in both the organizations when streamlining the workforce is to be implemented. Explain how such a negative environment could hamper the progress and success of the merger. Finally, explain how the elimination and optimization of employees will boost organizational performance and also ensure the efficiency is maintained in the future.
Slide 13 - Key Cultural Measures – Equality & Legacy
Ensure that policies drafted are in the interest of both organizations and are unbiased.
The employees have not job insecurities.
The treatment of the employees of the merged organization are treated as equals, with no assumptions of superiority.
These measures will help achieve the strategic goal of attaining organizational stability, maintaining low rates of attrition and a healthy work environment during the tumultuous first year post merger.
Presenter notes: Explain the above mentioned points in detail. Explain why having unbiased policies are crucial for the success of the merger. Use examples from the case study to highlight the concerns that had been raised by the board members of both the organizations pertaining to control of decision making. Explain how job insecurities would dilute the culture of the organization and could lead to high levels of attrition. Finally, explain how equal treatment of all staff members will ensure that the merger is effective in practice and not just on paper.
Slide 14 - Audience Strategy (Objectives, Goals and Broad Strategy)
Ewers had realized early on that the merger between the opera and the symphony would not be an easy task as it was subject to widespread criticism and skepticism when the idea was announced to the public. The dissent was not limited to any one section of the audience base. In order to understand the wide scope of audience strategy that Ewers would need to address, it is important to understand the key audience bases themselves.
However, it should first be evaluated what are the goals that are expected to be achieved, from an organizational point of view, from the merger. First, the opera as well as the symphony are struggling to cope with several challenges that have arisen due to a poor performing arts market in recent years. The lacks of endowments, decreasing levels of ticket sales as well as increasing operational costs have been foremost concerns for both the organizations. Through the merger, it is hoped that the immediate challenges to operational efficiency and cost will be addressed. The merger is also expected to pave the way for financial stability as well providing sufficient reserve of funds that can be utilized by both organizations during future contingencies. Finally, the combination of resources and processes of both organizations is expected to enhance operational efficiencies, thereby elevating performance levels and reducing costs of operations.
These objectives are to be ultimately communicated to the entire breadth of the audience base. However, for the audience to accept the need for the merger to achieve the wider organizational objectives, they first need to be assured that their own concerns will be addressed by it too. As such, Ewers’ audience strategy would be to first address the individual concerns of each of the audience base, followed by highlighting the commonalities between the two organizations and finally getting the audience to commit towards the success of the merger.
Slide 15: Audience Strategy Continued (Identifying audiences and their individual concerns)
The audience base that ewers’ audience strategy needs to address five main segments, namely: a) The combined workforce of the opera and the symphony, b) The board of directors and trustees of the opera and symphony, c) the community at large, d) Keith Lockhart, the music director of the symphony, and e) Mrs. Carolyn Abravanel.
Combined workforce: Employees from both, the opera as well as the symphony would be aware that the merger will eventually lead to the streamlining of the workforce and the re-writing of HR policies. Needless to say, insecurities will run high, especially among symphony employees who will view Ewers as the ‘outsider’. An ad hoc committee of the symphony musicians had raised certain points that they wanted to be considered during the merger. These included:
Artistic excellence would be protected and promoted through the organizational structure of the new organization.
Financial stability would be provided through effective fund-raising.
The status of the symphony being a 52 week season orchestra would not be compromised in the budget strategy, and
A strong collective bargaining agreement for the employees.
Board of directors: The directors on both sides had raised concerns about the commercial viability of the merger considering that the opera and the symphony operated in completely different ways and had varying schedules of performances. There were also insecurities pertaining to decision making power as Ewers had earlier been given the freedom to take decisions independently, while the symphony’s board were in the practice of not consulting their CEO when taking decisions.
Community: The community at large and those who were fans of the opera and symphony were concerned that the merger would dilute the cultures that their beloved individual organizations represented. Further, each section worried that performances of both organizations would be impacted negatively.
Keith Lockhart: He was concerned that his authority in the new organization would be superseded by Ewers’ and he would thus lose his positional power.
Mrs. Abravanel: Her husband was the founder of the opera and she was concerned that the legacy of artistic excellence that he had created would be lost due to the merger.
Slide 16: Audience Strategy Continued (Measures)
Key influencers will play a crucial role in the effectiveness of Ewers’ audience strategy. This particularly applies to the audience bases within the Utah symphony. Further, considering the conditions under which the merger is to take place, Ewers will need to use a ‘problem/solution’ or two sided structure, first highlighting the problems that each audience base faces and then emphasizing the solution that the merger will provide. Listing the cons first and then building on to the pros of the mergers will enable the audience base to see the ‘brighter side’. An ‘ascending’ order should be used to formulate the audience message as the each of the audience bases are well informed and engaged with the subject of the merger. At the beginning, Ewers should ask for less first as each of the audience bases are already apprehensive over what sacrifices the merger would require of them. Each of the audience bases will require a carefully planned and unique strategy for Ewers to be able to convince them to endorse the merger.
In order to influence Lockhart and Abravanel, Ewers should use ‘Ego benefits’ strategy. To begin with, Ewers would need to win the confidence of Keith Lockhart by allowing him to continue to hold power to build personal relationships with the employee base. This would mean that Lockhart would retain his personal power, even if he did not have his earlier positional power. Doing this would encourage him to collaborate with Ewers to pacify the concerns of symphony employees, assuring them that they would be treated fairly under the watch of Lockhart. Similarly, Ewers will need to gain the confidence of Mrs. Abravanel by possibly offering her an Honorary position in the merged organization and taking measures to include the legacy of Maurice Abravanel as part of the new company’s mission and vision.
In order to address the concerns of the workforce, Ewers will need to use a combination of tangible, career as well as group benefits strategy. The major concern of the employees of both the organization is job security as well as work contracts. While symphony employees are covered under contracts and unions, opera employees are mostly part-time. Ewers will first need to drive in the point that, even in the event of a merger not taking place, the financial condition of the individual organizations is such that the jobs of the employees are insecure. Should the merger go ahead, the merged organization will emerge more stable financially and hence be able to retain its employees. The employees should be assured that their current working terms and conditions will remain intact, with the possibility of better benefits and offerings with a more stable organization. Finally, the combined value and status of the organizations would mean that the employees would be working for a more prestigious organization, a fact that would enhance their own worth.
Slide 17 - Message Strategy
Ewers needs to consider the conditions in which she will be communicating to the target audience. Firstly, all parties involved are emotionally attached to the opera and the symphony and hence will take an effort to influence them with statistics. Secondly, although Ewers has done well to keep the opera financially strong, her credibility among symphony employees and audiences is very poor. Hence, it will be a challenge to make them trust her ‘word’. Thirdly, almost all stakeholders including employees, the community and members of the management are negatively biased towards the merger as is evidenced by their responses when the merger was first announced. Finally, although emotionally linked to the organization, the audience, especially the board of directors and employees, are open to hearing an analysis of the possibilities. Hence, considering these points, Ewers will need to take an indirect message strategy.
In order to convey her commitment towards the merged organization as well as the individual interests of its key audiences, Ewers will have to make the effort to present her message to each audience base on a personal level. A face to face meeting with Lockhart would be advisable. Ewers will have to present her points on Lockhart retaining his personal power over employees, especially those of the symphony, with extensions into the opera workforce. A face to face meeting with Mrs. Abravanel is also suggested. In both cases, it is crucial that Ewers, while conveying her message, keeps an open front, allowing both key influencers a chance to put forward their views and concerns. The issues raised by both individuals should be duly noted and a genuine attempt at resolution should be made. During this time, it is crucial that Ewers keeps communicating with Lockhart and Abravanel with updates and feedback, in order to keep renewing their memory of the message she has conveyed during their face to face meeting.
In the case of the workforce, a town hall meeting with the combined workforce attending should be arranged. Here, Ewers should first put forward her message to the audience, followed by a question and answer session where employees can directly communicate with her. Ewers will have to ensure that all the concerns of employees of both the organizations are addressed and, if possible, appeased to the maximum degree possible. The meeting should be followed up with regular communication of updates by email and managers. These messages should reiterate the organization’s commitment towards employee satisfaction and welfare. This will ensure that the message that Ewers wants to convey to the workforce will remain fresh in their minds.
Considering her audience strategy and measures have been successful, Ewers will have gained the confidence of Lockhart, Mrs. Abravanel, the Board of Directors and, to a great extent, the workforce. The community at large, and some portions of the combined workforce, may still need convincing though. Hence, Ewers will need to take up a face to face presentation of analysis and reasoning in order to build a bond and inspire trust through a ‘we are open to questions’ approach. She may hold a press conference where, backed by Lockhart and if possible Mrs. Abravanel, she can present her arguments and analysis in favour of the merged organization. In order to let her message reach as many people as possible, the presentation should be circulated through print in the form of a report or transcript, and a video of the conference through various electronic media such as the company’s website, social networking sites and other websites such as Youtube.
Slide 18 - Message Strategy (Continued)
Mission: To inspire trust and loyalty among the combined workforce and target audience base towards new organization and its leadership.
Key Measures:
An Indirect approach will need to be followed as the community at large as well as employees of both organizations, especially the symphony, will be in an emotional state concerning the outcome of the merger.
Ewers will need to undertake the setting and evaluation of performance or productivity levels to ensure that the streamlined workforce of the newly merged organization remains efficient.
Relevant incentives and motivational measures will need to be put in place before the changes to the workforce are implemented in order to eliminate the risk of attrition due to job related insecurities.
Presenter notes: Once again, reiterate how the merger could lead to a poor work environment and higher levels of attrition. Then go on to explain that, considering the organizations are involved in a creative field, it is vital to always maintain a high level of quality of offerings. Hence, it is important that the top talent of the company is retained. Then proceed to highlight how the above mentioned points could help the management to retain the best employees during and after the merger and ensure a healthy attrition rate is maintained.
Slide 19 - Suggestions for Technological Tools
The merged organization should use an automated Human Resources Management system that will enable fast, error free and accurate management of payroll, leave management, contracts, roster and so on.
This will save time, effort and cost, in addition to increasing the operational efficiency of the department.
Suggested tool: Infor HCM with Resource, Work-Force and Talent Management modules, known for wide spectrum functionality and reliability (Edwards, 2009)
Presenter Notes: Explain how the processes of HR such as payroll, leave management and so are generally maintained in a non-automated organization. Explain how this process results in wastage of time, money and effort. Then go on to highlight the salient features of a standard automated HRM system and how this will eliminate the wastage that was arising in a non-automated environment.
Slide 20 - Suggestions for Technological Tools
The merged organizations should utilize an integrated online portal that offers comprehensive services to customers who use the web.
Services should include regular updates on performances in Utah as well as across other states for both, the opera as well as the symphony, online donations, merchandize sales and options to book tickets online.
This will enable a wider audience reach and awareness, in addition to facilitating ticket sales and fund raising.
Presenter notes: Explain how the processes of ticket sales, communications with audiences, marketing and so on are generally maintained in a non-automated organization. Explain how this process results in wastage of time, money and effort. Then go on to highlight the salient features of an online portal and how this will eliminate the wastage that was arising in a non-automated environment.
Slide 21 - Contribution of Technological Tools
The implementation of the two selected technological tools, namely, an HRM application and an interactive web portal, will help achieve four out of five first year organizational goals.
HRM Application:
a) The application will automate and integrate the HR function of both organizations. It will be easier to combine the records with minimal manual data entry effort and time taken. Updating of records will also be made easier.
b) Operational and administrative expenses will be reduced as a percentage of profit. Fewer full time employees will be required in the HR department as the application will save time and effort per employee and hence boost their productivity.
c) It will enable the retention of key employees through its performance management and career development functions.
The implementation of an automated HRM system will allow better management of human capital, maintaining performance levels, tracking contracts and improving operational and functional efficiencies.
The HRM package will not only provide operational efficiency but its performance management and career development functions will help to reduce attrition rates as well as retain key employees. The HRM package can be used by the organizations human resources department to create a database of employees which would include competency based information such as education, qualifications, skills as well as years of experience. It would also include any current educational or training program that the employee is undergoing. The managers of each team or department would need to provide feedback on their perception of the employees’ capabilities. At the same time, the employee would be interviewed to get information about how they believe they should progress within the organization.
Based on this set of data, a career graph for each employee can be developed. This graph would plot the progress that each employee is expected to make over a period of time. For each progression, a set of accomplishments will also be listed. This would include enhancements in skills and qualification through further education and training programs. The performance of every employee would also be tracked on a monthly basis by their managers and the data entered into the application. Finally, a year end review of every employees’ performance and skill development will be conducted to gauge their progress across the career development chart. Employees can be given a detailed feedback on the areas of work that they need to focus on in order to progress and those employees who have met standards can be promoted to a higher designation. This entire process of performance appraisal and career progression can be plotted, mapped, analyzed and reported through the HRM application.
Web Portal:
a) The audience bases of the opera and symphony will be maintained through the implementation of a common web portal. The audiences will be able to access the updates on performances and other news pertaining to both the organizations on a common platform, bringing added awareness of what the other is doing. Communication with audiences will be facilitated making for easier and cost effective marketing and consumer interaction.
The integrated online portal will facilitate easier marketing of the new organization, help building a brand name, ease communication with audiences, boost ticket sales and enable improved fund raising.
Strategic Viability:
Both the automation implementation would reduce wastage of time and money and would minimize the manual effort required to complete several crucial operations.
The objectives of making the merged organization financially viable, build a name within the arts community and improve efficiencies will be attained through the implementation of these technological tools.
Presenter notes: Continuing from the earlier slides, summarize what you have just said about the need and effect of automated technology implementation in the merger organization. Highlight the above mentioned points and take examples from the case study to show the need for HR and marketing efficiencies in the merged company.
